The Madison Group (TMG), a leading source of mobile home park financing nationwide, arranged the $1,160,000 cash-out refinance of a 100 pad mobile home park in Kimberly Idaho. The borrower’s goals were to get maximum proceeds and a longer fixed rate term while rates are still low. TMG secured the nonrecourse financing with a 10 year fixed rate of 4.45% and a 30 year amortization at 75% LTV.
The park was built in several phases starting in the mid 1970’s, with the latest addition finished in the 1990’s. It is located in a rural market on 18 acres and has 100 pads. The borrowers purchased the property in 2012 when the park had only 70% occupancy. The owners have since brought the occupancy up to 90%. They own two other parks in the same market and are able to capture some operational savings due to their proximity.
The transaction was complicated by the lack of sales in the market in the past year and the rural location. In addition, few lenders could provide both nonrecourse and cash out terms for this MHP. TMG sourced a lender that was able to offer the borrowers all of the terms they requested.
“The owners were able to refinance at a lower rate, lower their monthly payments and get a significant amount of cash-out of the property. They are now well capitalized and plan to finish filling the park. With the cash-out from the refinance, the owners will buy mobile homes and sell them to tenants. This will increase their cash flow and the park’s value moving forward” said Angela Kesselman, TMG’s Associate Director of Finance.
The financing was arranged by Angela Kesselman at The Madison Group.
The Madison Group (www.madisongroupfunding.com) is a commercial loan broker and consultant specializing in financing for investor properties nationwide. TMG provides flexible and reliable capital for real estate acquisitions, refinances, and re-capitalizations for a variety of property types including: multifamily, mobile home parks, credit tenant NNN net lease, office, retail, industrial, self-storage and other commercial properties in the United States. Established in 2001, The Madison Group’s intention is to provide highly competitive loan products through its superior capital market expertise and quality sources of capital. TMG works efficiently and effectively to get the transaction closed and funded.
The Madison Group can be reached at 435-785-8350 or by emailing Angela at angela@madisongroupfunding.com.